A panel of experts discussed the implications of Nike's PR issues on endorsement deals and the future of the company.
Deborah Weinswig, the CEO and founder of Coresight Research, expressed her opinion that while having a celebrity endorsement is necessary, it is not wise to put too much stock into it.
March 18th 2023.
Nike has been facing some challenges recently, including Kyrie Irving's departure, Ja Morant's Instagram Live gun-waving incident, and the exposure of a Nike collaborator, Tom Sachs, in an article by Curbed.
However, this kind of situation is nothing new for companies that give celebrity endorsements. IMAGETAGGOESHERE Deborah Weinswig, CEO and founder of Coresight Research, discussed this matter during an interview with Insider. She stated, "I have always been skeptical of celebrity deals. You require the halo effect, but don't put all your eggs in one basket with one athlete."
She further suggested that companies should combine celebrity endorsements with those of their own employees, instead of relying only on the former. "It should be a blend of employees and celebrities. Every brand will find its own balance. That's the way forward."
Hitha Herzog, the chief retail analyst for Doneger Tobe, noted that social media has made things more complicated for companies when it comes to endorsement deals. She commented, "Brands are not doing a good job of vetting the people they are partnering with. We have more visibility into peoples' lives than ever before, and that is only going to increase in the future."
Matt Powell, a sportswear industry analyst, also expressed similar views. He declared, "I thought for a while brands were moving away from celebrity endorsements, but the recent issues have made that much less likely. It's not worth the money for brands anymore."
Insider additionally reported that Michael Jordan's deal with Nike is the most successful one, which has not been replicated. Serena Williams, Steph Curry, and Tom Brady's deals with Nike and Under Armour respectively have served to bring attention to the brands. Powell commented, "LeBron is the face of Nike today, and his reach is much more than his shoe sales. But companies are having to spend a lot of money with no real return."